Each year the CFTC publishes an agency financial report which provides data on financial and performance, operations management and information on the CFTC.  This is the 14th annual report that has been published.  Please see the link below to access the report: CFTC 2018 Report...

The recently enacted Tax Cuts and Jobs Act (TCJA) has made several changes to the tax law. Below we have summarized some of the changes we feel may affect some of our client base, mainly traders and investors. The TCJA suspended all miscellaneous itemized deductions, subject to a 2% floor, for individuals including investment fees and expenses. Therefore, investors are no longer entitled to these investment expenses. An important thing to note is that the TCJA did not change investment-interest expense rules. The itemized deduction is limited to investment income, and any excess is carried forward to subsequent years. The…...

An Introduction for Introducing Brokers Security matters, and the NFA and other financial regulators are pushing to help market participants appropriately protect their customers and themselves against cyber threats which could result in stolen data, compromised systems, and the potential theft of funds or other illegal transactions. An Information Systems Security Program (ISSP) is mandated by the NFA & CFTC for futures market participants including FCMs, CTAs and IBs. An ISSP is a written document that describes the actions a Member takes to protect its systems and data against associated risks. It could save your business. NFA guidance allows Members…...

The beginning of a new year is typically when Commodity Futures Trading Commission (“CFTC”) registered, National Futures Association (“NFA”) member firms are most focused on growing their book of business. While the launch of new marketing or trading campaigns is important, attention to shifting operational and regulatory issues is just as critical to running a successful brokerage and/or trading operation. For Futures Commission Merchants (“FCMs”), Introducing Brokers (“IBs”), Commodity Pool Operators (“CPOs”), and Commodity Trading Advisors (“CTAs”) the end of 2018 is the perfect time to take an account of company regulatory obligations. Based on experience with a diverse group…...

The Commodity Futures Trading Commission (CFTC) and the Center for Risk Management Education and Research (CRMER) at Kansas State University will host AgCon2019, the 2nd annual agricultural commodity futures conference on April 11-12 in Overland Park, Kansas. The CFTC and CRMER will again jointly host the conference, which brings together federal, state, and local governments with agribusiness and academia to discuss a range of topics that are important to the agricultural community who depend on the futures markets. “We are excited to once again partner with K-State to discuss significant derivatives-markets issues affecting the agricultural community. AgCon2018 brought together stakeholders…...

Due to the significant growth of the virtual currency market, the NFA has proposed an interpretive notice to the CFTC invoking the “ten-day” provision and will make it effective 10 days after receipt of submission. The notice was put forth because of concerns that customers do not fully understand the nature, volatility, and substantial risk involved with trading virtual currencies. Therefore, NFA is implementing new disclosure requirements for NFA Members engaging in virtual currency products. For IBs and FCMs, an Investor Advisory: — Futures on Virtual Currencies Including Bitcoin an the CFTC Customer Advisory: Understand the Risk of Virtual Currency…...

New and evolving technologies such as artificial intelligence, predictive analytics, machine learning and robotic process automation are now an everyday reality. Similarly, use of the Cloud and third-party systems have grown dramatically as the technology has become more complex. Business practices are being rapidly transformed in all sectors—from expediting insurance claims, automating financial processes and revolutionizing search algorithms to heralding a paradigm shift in cyber security and military technology. These emerging technologies provide a host of new benefits, but also create a horde of new risks. In this conference, we’ll discuss the real impact that these technologies have on all…...

This month NFA put out a fantastic reminder about common CTA/CPO ratio errors and the obligations facing reporting firms. In particular they have laid out their expectations for CTA and CPO ratio reporting. Please consider the following directly from NFA as a number of CPOs and CTAs have been incorrectly reporting these financial ratios: 1) Ratios must be calculated using the accrual method of accounting CPOs and CTAs are incorrectly calculating these ratios because they are using cash basis of accounting. Both ratios must be computed using the accrual method of accounting and in accordance with U.S. generally accepted accounting…...

Washington, DC — Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo announced today that the CFTC will hold an open meeting on Monday, November 5, 2018 at 10:00 a.m. to consider the following: Final Rule: Amending the De Minimis Exception to the Swap Dealer Definition Proposed Rule: Amendments to Regulations on Swap Execution Facilities and the Trade Execution Requirement Request for Comment regarding the Practice of “Post-Trade Name Give-Up” on Swap Execution Facilities The meeting is open to the public with seating on a first-come, first-served basis. Members of the public may also watch a live webcast or listen…...

The Complete IB Handbook – 2018 Edition Now Available Updated annually, The Complete IB Handbook is a comprehensive resource for prospective and current introducing brokers (IBs). This guide, written by Melinda H. Schramm of MHS Capital Resource and sponsored by CME Group, provides a state of the IB industry, covering current trends, business practices and regulation. Read the latest version, updated for 2018. Download Handbook...